A U.K. factory index increased to a 2 1/2-year high in August, while a pickup in Italy and Spain helped euro-area manufacturing expand faster than initially estimated, evidence the region’s recovery is building momentum.

A U.K. index of export orders rose to the highest in at least 15 years in the second quarter as a weaker pound bolstered demand for British goods in Europe and emerging markets, the Engineering Employers Federation said.